Completed dropdown of 33 percent interest in each of the Haverhill and
Middletown cokemaking facilities for total consideration of $365
million

Reaffirm full year 2014 consolidated Adjusted EBITDA outlook of $220
million to $240 million

Earnings per share for full year 2014 is projected to be $0.02 to
$0.24 per share, reflecting impact of higher interest and financing
expense partly offset by lower taxes and the change in noncontrolling
interests

Received final permit to construct and operate potential new
cokemaking facility in Kentucky

May 09, 2014 05:09 PM Eastern Daylight Time

LISLE, Ill.--(BUSINESS WIRE)--On May 9, 2014, SunCoke Energy, Inc. (NYSE: SXC) closed on its dropdown
agreement with SunCoke Energy Partners, L.P. (NYSE: SXCP) to contribute
a 33 percent interest in each of the Haverhill and Middletown cokemaking
facilities for total consideration of $365 million. SXC continues to
hold a 2 percent interest in both facilities. SXC is the sponsor,
general partner with a 2 percent general partner interest, and largest
unitholder of SXCP, holding a 54 percent limited partnership interest
and all the incentive distribution rights.

As part of the total consideration of $365 million, SXC received
$80 million of SXCP limited partner interest, or 2.7 million common
limited partner units, $3.3 million of general partner interest and
$10.4 million of cash, of which $7 million was used to pre-fund our
obligation related to an environmental remediation project at Haverhill.
In addition, SXCP assumed from SXC and subsequently paid down $99.9
million of our outstanding term loan and completed a tender offer for
$160 million of our 7.625 percent senior notes, paying a tender premium
of $11.4 million. We anticipate no material immediate tax gain as a
result of the transaction structure and forms of consideration.

We reaffirm our full year 2014 consolidated Adjusted EBITDA outlook of
$220 million to $240 million. However, Adjusted EBITDA attributable to
SXC is now expected to be between $160 million and $177 million,
reflecting the impact of public ownership on an increased portion of
Adjusted EBITDA attributable to SXCP.

As a result of the debt extinguishment activities discussed above, we
expect to record between $15 million and $18 million of additional
interest and financing expense attributable to SXCP in second quarter
2014 consolidated results. The impact of these transactions, partly
offset by lower taxes, reduces our full year earnings per share outlook
to $0.02 to $0.24 per share.

Separately, we have received a final permit to construct and operate a
potential new 660 thousand ton cokemaking facility near South Shore,
Kentucky. We plan to begin construction only after securing commitments
from customers for a substantial portion of the plant’s expected future
output.

UPDATED 2014 OUTLOOK

Our updated full year 2014 guidance is as follows:

Domestic coke production is expected to be approximately 4.2 million
tons

Coal production is projected to be approximately 1.3 million tons

Adjusted EBITDA is expected to be between $220 million and $240
million on a consolidated basis. Adjusted EBITDA attributable to SXC
is expected to be between $160 million and $177 million, reflecting
the impact of public ownership in SXCP

Earnings per diluted share attributable to SXC is expected to be
between $0.02 and $0.24 per diluted share

Cash generated by operations is expected to be approximately $160
million

Capital expenditures are projected to be $138 million

The effective tax rate for the full year 2014 is expected to be
between 0 percent and 10 percent, and the cash tax rate is expected to
be between 20 percent and 28 percent

RELATED COMMUNICATIONS

We plan to host an investor conference call on Monday, May 12, 2014 at
12:00 noon Eastern Time (11:00 a.m. Central Time). This conference call
will be webcast live and archived for replay on the Investor Relations
section of www.suncoke.com.
Participants can listen in by dialing 1-800-351-9852 (domestic) or
1-847-413-3123 (international) and referencing confirmation 37274836.
Please log in or dial in at least 10 minutes prior to the start time to
ensure a connection. A replay of the call will be available for two
weeks by calling 1-888-843-7419 (domestic) or 1-630-652-3042
(international) and referencing confirmation 3727 4836#.

SunCoke Energy, Inc. is the largest independent producer of coke in the
Americas, with 50 years of experience supplying coke to the integrated
steel industry. Our advanced, heat-recovery cokemaking process produces
high-quality coke for use in steelmaking, typically captures waste heat
for derivative energy resale and meets or exceeds environmental
standards. Our U.S. cokemaking facilities are located in Virginia,
Indiana, Ohio and Illinois. Outside the U.S., we have cokemaking
operations in Vitoria, Brazil and Odisha, India. Our coal mining
operations, which have more than 110 million tons of proven and probable
reserves, are located in Virginia and West Virginia. In addition,
through our 56 percent ownership of SXCP, we have an interest in SXCP's
coal logistics business which have the collective capacity to blend and
transload more than 30 million tons of coal annually. To learn more
about SunCoke Energy, Inc., visit our website at www.suncoke.com.

DEFINITIONS

Adjusted EBITDA represents
earnings before interest, taxes, depreciation, depletion and
amortization (“EBITDA”) adjusted for sales discounts and the interest,
taxes, depreciation, depletion and amortization attributable to our
equity method investment. EBITDA reflects sales discounts included as
a reduction in sales and other operating revenue. The sales discounts
represent the sharing with customers of a portion of nonconventional
fuel tax credits, which reduce our income tax expense. However, we
believe our Adjusted EBITDA would be inappropriately penalized if
these discounts were treated as a reduction of EBITDA since they
represent sharing of a tax benefit that is not included in EBITDA.
Accordingly, in computing Adjusted EBITDA, we have added back these
sales discounts. Our Adjusted EBITDA also includes EBITDA attributable
to our equity method investment. EBITDA and Adjusted EBITDA do not
represent and should not be considered alternatives to net income or
operating income under GAAP and may not be comparable to other
similarly titled measures in other businesses. Management believes
Adjusted EBITDA is an important measure of the operating performance
of the Company's net assets and provides useful information to
investors because it highlights trends in our business that may not
otherwise be apparent when relying solely on GAAP measures and because
it eliminates items that have less bearing on our operating
performance. Adjusted EBITDA is a measure of operating performance
that is not defined by GAAP, does not represent and should not be
considered a substitute for net income as determined in accordance
with GAAP. Calculations of Adjusted EBITDA may not be comparable to
those reported by other companies.

Some of the statements included in this press release constitute
“forward looking statements” (as defined in Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended). Forward-looking statements include
all statements that are not historical facts and may be identified by
the use of such words as “believe,” “expect,” “plan,” “project,”
“intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,”
“may,” “will,” “should” or the negative of these terms or similar
expressions. Forward-looking statements are inherently uncertain and
involve significant known and unknown risks and uncertainties (many of
which are beyond the control of the Company) that could cause actual
results to differ materially.

Such risks and uncertainties include, but are not limited to domestic
and international economic, political, business, operational,
competitive, regulatory and/or market factors affecting the Company, as
well as uncertainties related to: pending or future litigation,
legislation, or regulatory actions; liability for remedial actions or
assessments under existing or future environmental regulations; gains
and losses related to acquisition, disposition or impairment of assets;
recapitalizations; access to, and costs of, capital; the effects of
changes in accounting rules applicable to the Company; and changes in
tax, environmental and other laws and regulations applicable to the
Company’s businesses.

Forward-looking statements are not guarantees of future performance, but
are based upon the current knowledge, beliefs and expectations of
Company management, and upon assumptions by the Company concerning
future conditions, any or all of which ultimately may prove to be
inaccurate. The reader should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. The Company does not intend, and expressly disclaims any
obligation, to update or alter its forward-looking statements (or
associated cautionary language), whether as a result of new information,
future events or otherwise after the date of this press release except
as required by applicable law.

In accordance with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the Company has included in its filings
with the Securities and Exchange Commission cautionary language
identifying important factors (but not necessarily all the important
factors) that could cause actual results to differ materially from those
expressed in any forward-looking statement made by the Company. For
information concerning these factors, see the Company’s Securities and
Exchange Commission filings such as its annual and quarterly reports and
current reports on Form 8-K, copies of which are available free of
charge on the Company’s website at www.suncoke.com.
All forward-looking statements included in this press release are
expressly qualified in their entirety by such cautionary statements.
Unpredictable or unknown factors not discussed in this release also
could have material adverse effects on forward-looking statements.

Estimated 2014 Adjusted EBITDA to Estimated Net Income

2014

Low

High

Adjusted EBITDA attributable to SunCoke Energy, Inc.

$

160

$

177

Add: Adjusted EBITDA attributable to noncontrolling interest(1)

60

63

Adjusted EBITDA

220

240

Subtract:

Adjustments to unconsolidated affiliate earnings(2)

4

7

Depreciation, depletion and amortization

125

120

Interest expense, net

68

65

Income tax expense

–

5

Sales discounts provided to customers due to sharing of
nonconventional fuel tax credits

(1

)

(1

)

Net income

$

24

$

44

(1) Reflects noncontrolling interest in Indiana Harbor and the portion
of the Partnership owned by public unitholders.